Investing is an option many people opt for, in order to gain extra wealth due to the high cost of living these days. Undoubtedly, it’s a wise choice but is attached to several risks of loss.
To save you from that potential risk, Fund Matters brings to you 12 types of investment options that have a very low risk of losses:
1. Peer to Peer Lending
It is short-term investment option and is one of the lowest risk investment types. Wisely screening your loans and choosing only the best-rated loans has the capability of providing you with the best returns.
2. Savings Account with Interest
In such accounts, you can get a small amount of interest just by keeping your money on deposit. For this type of low-risk investment, you just have to open an account put in no more efforts.
3. Rewards on Credit Cards
Using credit cards, provide you with a return in the form of points. These points are equivalent to money and when you earn enough points you can spend it on anything you want.
4. Certificate of Deposit
Although this is one of the low-risk investment methods, it is also one of the most boring ones you will find. You just have to deposit your money for a specific time for a guaranteed return on your money.
This method is perfect for investors who wish to stabilize their portfolio. In order to avoid the risks, one must contact a good financial advisor.
6. TIPS-Treasury Inflation Protected Securities
This is a bond investment being offered by the treasury of the United States. This type of investment offers two methods of providing returns; one of the fixed interest rate while the second is government guaranteed and is the built-in inflation protection.
7. Money Market Funds
This fund is especially for people who don’t want to associate their investments with any kind of losses. It is mutual fund investment.
8. Municipal Bonds
For people who want to make their investments safe from the income tax, municipal bonds are perfect for them. In this case, chances of the borrower defaulting are very low.
9. Savings Bonds of the United States
This type of investment is similar to the TIPS investment. These bonds are also backed up by the government of the United States, making this type of investment extremely safe.
10. Cash Value Life Insurance
Universal life insurance, as well as the whole life insurance, lie in the branch of cash value life insurance. It offers the death benefit to the beneficiaries. Moreover, it also allows the investor to give a portion of it to any of his partners.
11. Online Checking Account
This is very much similar to the savings account. Even in this type of investment, you get a small return in the form of interests just by keeping your deposits.
12. Bonuses from the Bank
Bank bonus can help you earn free cash on the money that doesn’t come into your usage for a while. Some of the banks offer this as an incentive to their customers for dealing with them.
There are some other investment methods with slightly higher risk of losses. Some of these types of investments include; Dividend Paying Stocks and Mutual Funds and the Preferred Stock. Choose the one that’s best according to your requirements and risk-taking abilities.
Content Source: Fund-Matters.Com
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